The Nevada Financial Institutions Division (NFID) has filed a petition in the Eighth Judicial District Court of Nevada to place Prime Trust, a Nevada-chartered trust company, in receivership. The petition alleges that Prime Trust has engaged in unsafe and unsound practices, violated state and federal laws and regulations, and failed to comply with prior orders issued by the NFID.
According to the petition, Prime Trust provides custody, escrow, and payment services for various digital assets, such as cryptocurrencies, tokens, and stablecoins. The petition claims that Prime Trust has failed to maintain adequate capital, liquidity, and reserves to support its operations and obligations. It also accuses Prime Trust of commingling funds, misrepresenting its financial condition, and failing to implement adequate internal controls and risk management.
The petition seeks to appoint a receiver to take over the management and control of Prime Trust, and to protect the rights and interests of its customers, creditors, and other stakeholders. The NFID asserts that this action is necessary to prevent further harm to the trust industry in Nevada, which relies on the integrity and trustworthiness of its members. The petition also aims to preserve the reputation and stability of Nevada as a favorable jurisdiction for trust companies and their customers.
In a similar vein, A federal judge in New York has denied a motion by Binance, the world’s largest cryptocurrency exchange, to dismiss a lawsuit filed by the Securities and Exchange Commission (SEC) over a press release that allegedly misled investors. The SEC sued Binance in April, claiming that the exchange violated federal securities laws by issuing a press release in March that announced its compliance with U.S. regulations and its intention to launch a U.S.-based platform. The SEC argued that the press release was false and misleading, as Binance had not registered with the agency or obtained any exemptions from registration.
Binance moved to dismiss the lawsuit, arguing that the press release was protected by the First Amendment and that the SEC failed to state a plausible claim. However, Judge Lorna Schofield rejected Binance’s arguments, finding that the press release was not a mere expression of opinion, but a factual statement that could be proven true or false. She also found that the SEC sufficiently alleged that Binance’s press release was material and likely to influence investors’ decisions. The judge’s ruling means that the case will proceed to discovery, where both parties will exchange evidence and information. The SEC is seeking injunctive relief, disgorgement of ill-gotten gains, and civil penalties from Binance. Binance has not commented on the ruling yet.
